Great Elm Group, Inc. (GEG) vs Hennessy Advisors, Inc. (HNNA)

Great Elm Group, Inc. and Hennessy Advisors, Inc. are both Asset Management companies. Hennessy Advisors, Inc. is the larger, with a market value of $83.2M against $66.5M — 1.2× the size. Great Elm Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Hennessy Advisors, Inc. trades at 10.0×. Hennessy Advisors, Inc. grew revenue faster over the last twelve months: −6.90% against −12.1%. Hennessy Advisors, Inc. has the higher net margin (24.8% vs −160.2%) and the higher return on invested capital (10.6% vs −11.8%). Across the 19 metrics below, Hennessy Advisors, Inc. leads on 19 and Great Elm Group, Inc. on 0.

Valuation

Metric GEG HNNA Asset Management median
P/E n/m 9.95 13.38
P/S 3.15 2.45 2.99
P/B 1.74 0.81 0.91
Price to free cash flow 45.80 8.04 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (48.84%) 10.05% 4.67%
Free cash flow yield 2.18% 12.44% 4.85%

Profitability

Metric GEG HNNA Asset Management median
Gross margin 0.00% 100.00% 100.00%
Operating margin (67.76%) 33.42% 27.27%
Net margin (160.19%) 24.78% 11.89%
Free cash flow margin 6.15% 30.53% 5.96%
Return on equity (54.36%) 8.36% 4.57%
Return on assets (24.57%) 5.88% 1.40%
Return on invested capital (11.77%) 10.59% 2.12%

Growth

Metric GEG HNNA Asset Management median
Revenue growth (TTM) (12.05%) (6.90%) 7.26%
EPS growth (last fiscal year) (407.89%) 38.04% (5.64%)
Revenue growth, 5-year CAGR (14.52%) 1.26% 11.84%
Net income growth, 5-year CAGR 0.00% 4.90% 0.00%

Health

Metric GEG HNNA Asset Management median
Debt to equity 1.00 0.00 0.40
Current ratio 2.89 9.39 1.23
Net debt to EBITDA 2.68 (2.37) 1.06

Dividend

Metric GEG HNNA Asset Management median
Dividend yield — 5.68% 6.43%
Payout ratio — 0.56 0.91

Size

Metric GEG HNNA Asset Management median
Market cap 66.52m 83.15m 692.54m

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